Terms Used In Louisiana Revised Statutes > Title 27 > Chapter 3 - Transfer Provisions

• Acceptable collateral: means any of the following:

              (a) As to securities lending transactions, and for the purpose of calculating counterparty exposure amount, cash, cash equivalents, letters of credit, direct obligations of, or securities that are fully guaranteed as to principal and interest by, the government of the United States or any agency of the United States, or by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, or any state or territory of the United States or the District of Columbia and as to lending foreign securities, sovereign debt rated one by the SVO. See Louisiana Revised Statutes 22:601.1

• Admitted assets: means assets permitted to be reported as admitted assets on the statutory financial statement of the insurer most recently required to be filed with the commissioner, but excluding assets of separate accounts, the investments of which are not subject to the provisions of this Subpart. See Louisiana Revised Statutes 22:601.1
• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Asset-backed security: means a security or other instrument, excluding a mutual fund and mortgage-backed securities, evidencing an interest in, or the right to receive payments from, or payable from distributions on, an asset, a pool of assets or specifically divisible cash flows which are legally transferred to a trust or another special purpose bankruptcy-remote business entity, on both of the following conditions:

              (a) The trust or other business entity is established solely for the purpose of acquiring specific types of assets or rights to cash flows, issuing securities and other instruments representing an interest in or right to receive cash flows from those assets or rights, and engaging in activities required to service the assets or rights and any credit enhancement or support features held by the trust or other business entity. See Louisiana Revised Statutes 22:601.1

• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• bonds: includes the following:

              (a) United States Treasury securities. See Louisiana Revised Statutes 22:601.1

• Business entity: includes a sole proprietorship, corporation, limited liability company, association, partnership, joint stock company, joint venture, mutual fund, trust, joint tenancy, or other similar form of business organization, whether organized for-profit or not-for-profit. See Louisiana Revised Statutes 22:601.1
• Cap: means an agreement obligating the seller to make payments to the buyer, with each payment based on the amount by which a reference price or level or the performance or value of one or more underlying interests exceeds a predetermined number, sometimes called the strike rate or strike price. See Louisiana Revised Statutes 22:601.1
• Capital and surplus: means the sum of the capital and surplus of the insurer required to be shown on the statutory financial statement of the insurer most recently required to be filed with the commissioner. See Louisiana Revised Statutes 22:601.1
• Cash equivalents: means short-term, highly rated, and highly liquid investments or securities readily convertible to known amounts of cash without penalty and so near maturity that they present insignificant risk of change in value. See Louisiana Revised Statutes 22:601.1
• Conviction: A judgement of guilt against a criminal defendant.
• Counterparty exposure amount: means :

              (a) The net amount of credit risk attributable to a derivative instrument executed with a business entity other than through a qualified exchange, qualified foreign exchange, or cleared through a qualified clearinghouse, also referred to as an "over-the-counter derivative instrument". See Louisiana Revised Statutes 22:601.1

• Covered: means that an insurer owns or can immediately acquire, through the exercise of options, warrants, or conversion rights already owned, the underlying interest in order to fulfill or secure its obligations under a call option, cap, or floor it has written, or has set aside under a custodial or escrow agreement cash or cash equivalents with a market value equal to the amount required to fulfill its obligations under a put option it has written, in an income generation transaction. See Louisiana Revised Statutes 22:601.1
• Deed: The legal instrument used to transfer title in real property from one person to another.
• Derivative instrument: means an agreement, option, instrument, or a series or combination thereof:

              (i) To make or take delivery of, or assume or relinquish, a specified amount of one or more underlying interests, or to make a cash settlement in lieu thereof. See Louisiana Revised Statutes 22:601.1

• Derivative transaction: means a transaction involving the use of one or more derivative instruments. See Louisiana Revised Statutes 22:601.1
• directly: when used in connection with an obligation, means that the designated obligor is primarily liable on the instrument representing the obligation. See Louisiana Revised Statutes 22:601.1
• Equivalent securities: means :

              (a) In a securities lending transaction, securities that are identical to the loaned securities in all features including the amount of the loaned securities, except as to the certificate number if held in physical form, but if any different security shall be exchanged for a loaned security by recapitalization, merger, consolidation, or other corporate action, the different security shall be considered to be the loaned security. See Louisiana Revised Statutes 22:601.1

• Escrow: Money given to a third party to be held for payment until certain conditions are met.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Exchange-traded fund: means funds registered as open-end investment companies or unit investment trusts under 15 U. See Louisiana Revised Statutes 22:601.1
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Floor: means an agreement obligating the seller to make payments to the buyer in which each payment is based on the amount by which a predetermined number, sometimes called the floor rate or price, exceeds a reference price, level, performance, or value of one or more underlying interests. See Louisiana Revised Statutes 22:601.1
• Foreign jurisdiction: means a jurisdiction other than a domestic jurisdiction. See Louisiana Revised Statutes 22:601.1
• Future: means an agreement, traded on a qualified exchange or qualified foreign exchange, to make or take delivery of, or effect a cash settlement based on the actual or expected price, level, performance, or value of, one or more underlying interests. See Louisiana Revised Statutes 22:601.1
• Guaranteed or insured: when used in connection with an obligation acquired pursuant to this Subpart, means that the guarantor or insurer has agreed to one of the following:

              (a) Perform or insure the obligation of the obligor or purchase the obligation. See Louisiana Revised Statutes 22:601.1

• Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. ^{Source: OCC}
• Hedging transaction: means a derivative transaction which is entered into and maintained to reduce one of the following:

              (a) The risk of a change in the value, yield, price, cash flow, or quantity of assets or liabilities which the insurer has acquired or incurred or anticipates acquiring or incurring. See Louisiana Revised Statutes 22:601.1

• Highly rated: means an investment rated "P-1" by Moody's Investors Service, Inc. See Louisiana Revised Statutes 22:601.1
• Income: means , as to a security, interest, accrual of discount, dividends, or other distributions, such as rights, tax or assessment credits, warrants and distributions in kind. See Louisiana Revised Statutes 22:601.1
• Insurance future: means a future relating to an index or pool that is based on insurance-related items. See Louisiana Revised Statutes 22:601.1
• Investment company: means an investment company as defined in 15 U. See Louisiana Revised Statutes 22:601.1
• Investment company series: means an investment portfolio of an investment company that is organized as a series company and to which assets of the investment company have been specifically allocated. See Louisiana Revised Statutes 22:601.1
• Investment subsidiary: means a subsidiary of an insurer engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer if each subsidiary agrees to limit its investment in any asset so that its investments will not cause the amount of the total investment of the insurer to exceed any of the investment limitations or avoid any other provisions of this Subpart applicable to the insurer. See Louisiana Revised Statutes 22:601.1
• Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Limited liability company: means a business organization, excluding partnerships and ordinary business corporations, organized or operating under the laws of the United States or any state thereof that limits the personal liability of investors to the equity investment of the investor in the business entity. See Louisiana Revised Statutes 22:601.1
• Market value: means :

              (a) As to cash and letters of credit, the amounts thereof. See Louisiana Revised Statutes 22:601.1

• Money market mutual fund: means a mutual fund that meets the conditions of 17 C. See Louisiana Revised Statutes 22:601.1
• Mortgage-backed security: means debt obligations, including collateralized mortgage obligations, which represent claims to the cash flows from pools of mortgage loans made by financial institutions. See Louisiana Revised Statutes 22:601.1
• Multilateral development bank: means an international development organization of which the United States is a member. See Louisiana Revised Statutes 22:601.1
• Mutual fund: means an investment company or, in the case of an investment company that is organized as a series company, an investment company series, that, in either case, is registered with the United States Securities and Exchange Commission under 15 U. See Louisiana Revised Statutes 22:601.1
• NAIC: means the National Association of Insurance Commissioners. See Louisiana Revised Statutes 22:601.1
• National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. ^{Source: OCC}
• Obligation: means a bond, note, debenture, trust certificate including an equipment certificate, production payment, negotiable bank certificate of deposit, bankers' acceptance, and other evidence of indebtedness for the payment of money, or participations, certificates, or other evidences of an interest in any of the foregoing, whether constituting a general obligation of the issuer or payable only out of certain revenues or certain funds pledged or otherwise dedicated for payment. See Louisiana Revised Statutes 22:601.1
• Option: means an agreement giving the buyer the right to buy or receive, known as a "call option" sell or deliver, known as a "put option" enter into, extend or terminate or effect a cash settlement based on the actual or expected price, level, performance, or value of one or more underlying interests. See Louisiana Revised Statutes 22:601.1
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: means an individual, a business entity, a multilateral development bank, or a government or quasi-governmental body, such as a political subdivision or a government-sponsored enterprise. See Louisiana Revised Statutes 22:601.1
• Potential exposure: means the amount determined in accordance with the NAIC Annual Statement Instructions, as amended. See Louisiana Revised Statutes 22:601.1
• Preferred stock: means preferred, preference, or guaranteed stock of a business entity authorized to issue the stock, that has a preference in liquidation over the common stock of the business entity. See Louisiana Revised Statutes 22:601.1
• Qualified bank: means any of the following:

              (a) A national bank, state bank, or trust company that at all times is no less than adequately capitalized as determined by standards adopted by United States banking regulators and that is either regulated by state banking laws or is a member of the Federal Reserve System. See Louisiana Revised Statutes 22:601.1

• Qualified business entity: means a business entity that is one of the following:

              (a) An issuer of obligations or preferred stock that are rated one or two by the SVO or an issuer of obligations, preferred stock or derivative instruments that are rated the equivalent of one or two by the SVO, or by a nationally recognized statistical rating organization recognized by the SVO. See Louisiana Revised Statutes 22:601.1

• Qualified exchange: means any of the following:

              (a) A securities exchange registered as a national securities exchange or a securities market regulated under 15 U. See Louisiana Revised Statutes 22:601.1

• Qualified foreign exchange: means a foreign exchange, board of trade, or contract market located outside the United States, its territories, or possessions meeting all of the following criteria:

              (a) That has received regulatory comparability relief under Commodity Futures Trading Commission Rule 30. See Louisiana Revised Statutes 22:601.1

• Qualified primary credit source: means the credit source to which an insurer looks for payment as to an investment and against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction. See Louisiana Revised Statutes 22:601.1
• Real estate: means :

              (a) Any of the following:

              (i) Immovable property. See Louisiana Revised Statutes 22:601.1

• Replication transaction: means a derivative transaction that is intended to replicate the performance of one or more assets that an insurer is authorized to acquire pursuant to this Subpart. See Louisiana Revised Statutes 22:601.1
• Repurchase transaction: means a transaction in which an insurer sells securities to a business entity and is obligated to repurchase the sold securities or equivalent securities from the business entity at a specified price, either within a specified period or upon demand. See Louisiana Revised Statutes 22:601.1
• Reverse repurchase transaction: means a transaction in which an insurer purchases securities from a business entity that is obligated to repurchase the purchased securities or equivalent securities from the insurer at a specified price, either within a specified period or upon demand. See Louisiana Revised Statutes 22:601.1
• Secured location: means the contiguous real estate owned by one person. See Louisiana Revised Statutes 22:601.1
• Securities lending transaction: means a transaction in which securities are loaned by an insurer to a business entity that is obligated to return the loaned securities or equivalent securities to the insurer, either within a specified period or upon demand. See Louisiana Revised Statutes 22:601.1
• Series company: means an investment company that is organized as a series company, as defined in 17 C. See Louisiana Revised Statutes 22:601.1
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• Shell business entity: means a business entity having no economic substance, except as a vehicle for owning interests in assets issued, owned, or previously owned by a person domiciled in a foreign jurisdiction. See Louisiana Revised Statutes 22:601.1
• Short-term: means investments with a remaining term to maturity of ninety days or less. See Louisiana Revised Statutes 22:601.1
• State: means a state, territory, or possession of the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. See Louisiana Revised Statutes 22:601.1
• Subpoena: A command to a witness to appear and give testimony.
• Substantially similar securities: means securities that meet all criteria for substantially similar specified in the NAIC Accounting Practices and Procedures Manual, as amended, and in an amount that constitutes good delivery form as determined from time to time by the Public Securities Association. See Louisiana Revised Statutes 22:601.1
• SVO: means the Securities Valuation Office of the NAIC or any successor office established by the NAIC. See Louisiana Revised Statutes 22:601.1
• Swap: means an agreement to exchange or to net payments at one or more times based on the actual or expected price, level, performance, or value of one or more underlying interests. See Louisiana Revised Statutes 22:601.1
• Underlying interest: means the assets, liabilities, other interests, or a combination thereof underlying a derivative instrument, such as any one or more securities, currencies, rates, indices, commodities, or derivative instruments. See Louisiana Revised Statutes 22:601.1
• Warrant: means an instrument that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement. See Louisiana Revised Statutes 22:601.1